The majority of economists surveyed by the National Association for Business Economics believe that the federal deficit should be reduced only or primarily through spending cuts.
The survey out Monday found that 56 percent of the NABE members surveyed felt that way, while 37 percent said they favor equal parts spending cuts and tax increases. The remaining 7 percent believe it should be done only or mostly through tax increases.
That 7 percent must be former Enron adviser Paul Krugman and his knitting circle.
As for how to reduce the deficit, nearly 40 percent said the best way would be to contain Medicare and Medicaid costs. Nearly a quarter recommended overhauling the tax system and simplifying tax rates and exemptions. About 15 percent said the government should enact tough spending caps and cut discretionary spending.
Hm. That sounds an awful lot like Cut, Cap and Balance, the sensible plan that Harry Reid wouldn’t even bring up for a vote in the Senate.
According to the survey of 250 economists who are members of NABE, nearly 49 percent of those responding said the country’s fiscal policy should be more restrictive, while nearly 37 percent said they believe the government should do more to stimulate the economy. The remainder said fiscal policy should remain the same.
At the same time, more than 70 percent of the people that responded said they expect U.S. fiscal policy to be more restrictive over the next two years.
As long as Obama remains in the presidency, a more restrictive spending policy is highly unlikely. This is the president whose administration just launched a free school lunch program in Detroit that even pays for the lunches of rich kids, in the name of protecting other kids’ feelings. An administration that thinks along such lines isn’t likely to get restrictive on other spending. Unless it involves cutting DoD, of course.
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